Offering funds drilling, development, debt repayment and acquisitions
By Devika Patel
Knoxville, Tenn., Dec. 11 - Ring Energy, Inc. said the underwriters for its public offering of stock opted to exercise the deal's $7.5 million greenshoe in full for total proceeds of $57.5 million. The offering was announced Dec. 2 and priced for $50 million with the greenshoe on Dec. 5.
The company sold 5.75 million common shares at $10.00 per share. The price per share reflects a 10.48% discount to the Dec. 4 closing share price of $11.17. Of the shares, 750,000 were part of the fully exercised greenshoe.
SunTrust Robinson Humphrey, Inc. was the sole bookrunner.
Proceeds will be used for drilling and development of properties, to pay for additional leases of oil and gas properties, to pay down debt under the company's credit facility and to pay for acquisitions of oil and gas properties.
Ring Energy is an oil and gas company based in Redlands, Calif.
| Issuer: | Ring Energy, Inc.
|
| Issue: | Common stock
|
| Amount: | $57.5 million (including $7.5 million greenshoe)
|
| Shares: | 5.75 million
|
| Price: | $10.00
|
| Warrants: | No
|
| Bookrunner: | SunTrust Robinson Humphrey, Inc.
|
| Co-managers: | Capital One Securities, Inc., Global Hunter Securities, LLC, Euro Pacific Capital Inc., IBERIA Capital Partners LLC, Noble Financial Capital Markets, Northland Capital Markets, and Roth Capital Partners, LLC
|
| Announcement date: | Dec. 2
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| Pricing date: | Dec. 5
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| Settlement date: | Dec. 11
|
| Stock symbol: | NYSE: REI
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| Stock price: | $11.17 at close Dec. 4
|
| Market capitalization: | $196.7 million
|
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